- Self managed super funds will now be permitted to have up to 6 members in a fund. However, it’s important to check that this is permitted under the fund’s trust deed as well as under State and Territory laws which may limit the number of trustees to less than 6.
- The concessional (before tax) contributions cap will increase from $25,000 to $27,500.
- The non-concessional (after tax) contributions cap will increase from $100,000 to $110,000. Additionally, if certain eligibility criteria are met, it may be possible to bring forward 3 years of non-concessional contributions in a single financial year ie $330,000
- Where a new pension is commenced on or after 1 July 2021, the amount that can be transferred from an accumulation account to a pension account will increase from $1.6 Million to $1.7 Million.
- Where a member’s total super balance exceeds $1.7 Million (from 1 July 2021), that member will not be permitted to make further non-concessional contributions.
- Minimum pension rates continue to be halved for the financial year ending 30 June 2022.
- Amounts up to $20,000, accessed under the COVID-19 early release of super can now be re-contributed without counting towards the non-concessional contributions cap. These contributions must not exceed the actual amount accessed early and can be made at any time from 1 July 2021 to 30 June 2030. However, no tax deduction, as a personal super contribution, can be claimed in respect of these contributions. Notification of the re-contribution of COVID-19 early release of super amounts made must be advised by way of an approved form before or at the time the contribution is made.
Contributed by Minakshi Rohit